Oil steady as Chinese data offsets coronavirus fears

INTERNATIONAL – Oil prices held steady on Monday as a better than expected quarterly rebound for China’s economy countered fears over soaring Covid-19 cases around the world and tight restrictions that could dent economic growth and fuel consumption.

Brent crude gained 3 cents, or 0.1 percent, at $55.13 a barrel by 0938 GMT while US oil was up 2 cents, or less than 0.1 percent, at $52.38.

China’s economy picked up in the fourth quarter, with growth beating expectations as it ended a coronavirus-hit 2020 in remarkably good shape and remained poised to expand further this year even as the pandemic raged unabated.

However, China was in marked contrast to the US and Europe, where the spread of coronavirus has raised doubts over how soon economies could recover.

“Corona-induced economic fears, a stronger US dollar and more pessimistic investor sentiment are all playing their part in the fact that Brent is trading … around $3 lower than last Wednesday,” said Commerzbank analyst Eugen Weinberg.